Ensuring affordable, long term, and environmentally sound disposal of MSW

What is the relationship between Coastal and Fiberight?

Fiberight, LLC is the parent company that developed and owns the technology for processing mixed MSW to be installed in the facility in Hampden.  They were the original respondent to the RFEI issued by the MRC in 2013; the entity that signed the Development Agreement with the MRC in 2015; and that managed the early stage development of the Hampden project.  Fiberight was also the original signatory to the Site Lease and Master Waste Supply Agreement with the MRC.

Coastal Resources of Maine, LLC is the project company formed by Fiberight to finance, own, and operate the Hampden project.  In these types of projects, it is typical to form a special single-purpose entity to facilitate financing.  Thus, as the project was developed, Fiberight formed Coastal as a limited liability company (LLC), for the single purpose of owning the Hampden project.

At first, Fiberight owned all of Coastal.  Coastal was added as a party to the Site Lease and Master Waste Supply Agreement by agreement with the MRC which had foreseen all of these arrangements and accounted for them in the agreements.  The MRC required Fiberight to stay in the project as a party to these agreements as well.  Then, to raise equity capital for the Hampden project, Fiberight sold off shares in Coastal to an equity investor, Ultra Capital, with the proceeds of the sale being invested in the project.

As a result, today:

  • MRC is landlord of the property upon which the project is located.
  • Coastal is the owner of record of the Hampden facility.
  • Fiberight and Ultra Capital are co-owners of Coastal.
  • Coastal is responsible for paying back construction loans.
  • Coastal and Fiberight are both parties to the Site Lease and Master Waste Supply Agreement with the MRC.
  • Fiberight owns the technology rights.
  • Fiberight is also developing other projects.  If Fiberight is successful in developing a project in X-town, then Fiberight would form a different company, X-town LLC, to own that project.  In that way, Fiberight stays involved in all of its projects, but the individual projects are separated from each other and can be financed and operated separately.
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